Reykjavik, a City of harmony
Reykjavík, the capital of Iceland, conveniently located between Europe and North America, is a modern and forward-looking city with a rich cultural heritage. Harmoniously combining modern services and facilities with an unspoilt and unpolluted natural environment, Reykjavík is peaceful, safe and full of charm, a unique destination for its own sake and a bridge between the outside world and the magnificent Icelandic landscape. lceland's capital offers the best of both worlds; a small, close-knit community and a cosmopolitan European capital.

History
The history of Iceland and Reykjavík go hand-in-hand. Icelandic history began when the first settler, the Viking Ingólfur Arnarson, built his house on an inlet south of Faxaflói Bay. Seeing what he thought was smoke rising from a small valley nearby, he named his homestead Reykjavík (Smoky Bay). "Steamy Bay" would have been closer to the truth, for the smoke was actually steam from the many hot springs in the area.

For centuries, Reykjavík was really just farmland and in 1786, when it became a chartered township, it only had a population of 167 in 30 dwellings. When Iceland became an independent republic on 17 June 1944, Reykjavík began to flourish as the cultural, social, commercial and administrative capital of this young state with ancient roots. Today, Reykjavík is home to over 100,000 people in 30,000 households, with another 50,000 living in the neighbouring communities.

Environment
The air in modern and bustling Reykjavík is still as clear and fresh today as it was when it was first settled, and the view across the bay that greeted the first settler has hardly changed. The encircling mountains still change their hues to match the seasons and light.

Every summer the City of Reykjavík employs about a hundred young people to plant thousands of trees in Heiðm–rk, the nature reserve on its outskirts, to fight the ever-increasing soil erosion.

Nature can still thrive in the company of man. Elliðaár, one of the best salmon rivers in the anglers' paradise of Iceland, flows within the city limits of the nation's capital.

Birds still flock to Reykjavík every spring to nest, as they have done since time immemorial.

One reason why Reykjavík has stayed clean and green in the age of technology are the main energy sources that drive it; geothermal heat from hot springs and hydro-electricity from highland waterfalls, both pollution-free and renewable natural resources.

Leisure
Splendid natural wonders are only a short drive away. Nearby are the Thingvellir plains, bordered by a lava chasm and beautiful lake, where the Althing - the world's oldest extant parliament - was established in 930, and beyond them Gullfoss ("Golden Falls") and the spouting hot spring of Geysir. Winter attractions include skiing in Bláfjöll and Skálafell, only 30 minutes away by car. The most popular sport is swimming, a compulsory school subject but with an ageless appeal. In 1992 over 1.3 million people visited the city's swimming pools.

Cultural activities
More than 50 art museums and galleries exhibit paintings and sculptures by international and Icelandic artists, both old and modern. The City of Reykjavik runs two of the above-mentioned art museums.

There are numerous theatres in Reykjavík, the two professional ones being the Municipal Theatre and the National Theatre.

Regular performances are given by the Icelandic Opera and Symphony Orchestra, and a wide selection of music - not only classical, but also rock, jazz and blues - can always be found at various smaller venues around the city, catering for every musical taste.

Industry
Its fine natural harbour has helped Reykjavík develop over the centuries into a major trade centre and fishing port. Iceland's traditional industry of fishing dates right back to the settlement and has developed into the modern food industry on which the national economy is largely based.

The bulk of Iceland's export trade and almost all its imports are handled through the Port of Reykjavík's new harbour facility. This role in international trade, along with the fact that Reykjavík is Iceland's centre of government, media, finance and social services such as health care, explains why nearly 70% of the capital's workforce is employed in trade or services.

Construction is an important industry in the rapidly growing capital, while manufacturing largely centres on food production and light industries, along with high-technology fields such as software design. Heavy industry, such as the metal factories which are Iceland's second most important export sector, have been deliberately located well away from Reykjavík to eliminate industrial pollution in the city.

On the international scene
International links are the order of the day in the cultural, business and political capital of Iceland. Regular visits by overseas artists and performers reach a peak every two years during the 2-3-week summer Reykjavík Arts Festival, a feast of music, visual arts and other creative activities featuring some of the biggest names around. Reykjavík played the key role when Iceland hosted the 1995 world handball championship and is still recalled as the place where Fischer and Spassky played the chess match of the century back in 1972. In the geo-political arena, Reykjavík played host to the Gorbachev-Reagan summit of 1986, when the first peaceful moves towards the new